Finding Support in Emerging Markets

Christian Fromhertz, founder and CEO of the Tribeca Trade Group, takes a technical look at emerging markets. He deconstructs the components of $EEM, reviews key levels to watch out for, and discusses how to make the trade. Filmed on January 16, 2019 in New York.

Comments

I think Ms. Stockton makes a better case for ILF and you avoid the China risk even though she specifically didn't make that point. Mr Fromhertz made a compelling presentation,I just don't like China here.

Simply speaking, his chart exhibits a double bottom, and the fundamentals like PE and CAPE are much better than US stocks. The choice is, do you buy A) stocks with low CAPE that are rising in a breakout higher from a low level, or B) stocks with high CAPE in a breakdown lower from historically stretched levels? Also, the FX for choice A is rising significantly against the FX for choice B. Seems an obvious choice with a medium-to-long term horizon.

Why are we keep hearing this EEM trade idea? We heard the same idea from Thomas Thornton a few days ago.
My reply is the same.
I'd much prefer owning the Brazilian ETF EWZ than EEM - Having exposure to Chinese financials, Samsung and Taiwan Semiconductors doesn't appeal to me at this time.
I'd also rather buy Tencent outright rather than through an ETF.